Crypto is finally getting the acceptance that it deserves through the govt. And this is not just one nation but almost every nation out there is accepting the crypto. However making the crypto as legal tender has it's issues. Like it could destroy your local currency through which colonization of 1st world can be a new risk.
Now considering some of the highly inflated nations are already under the virtual colony of the 1st world. They have given the nodd of the crypto as a legal tender easily but a lot of nations out there can't do that, such as USA, South Korea, China and others.
South Korea recently put up a ban on the crypto purchase through the credit card. And this has made the regulation even more strict because they don't want to give crypto the status of legal tender but treat it like a stock.
Let's check out some of the regulatory actions of the South Korea on crypto market.
Restricting Crypto Purchase through Credit Cards
When consumer is purchasing the crypto through the FIAT and the credit card. It kind of makes the FIAT useless and also the value of the crypto increases despite not being allowed as a legal tender. Which in short shows the market that crypto needs to push FIAT in the market. Which govt does not want to allow in the first place.
So they restrict the crypto purchases through the VISA and other card companies. And they also make the payment gateway providers to follow the new rules so that it can make the regulation easier on the assets which are not legal tender. This is a move that South Korea wants to take to preseve the sanity of the FIAT and other legal tenders.
Overseas Reporting doesn't include Crypto Wallets
South Korea is one of the sorted people out there on the planet. Here's why, they treat your decentralized wallet different than the centralized wallet. And you are only allowed to report the coins and the holdings in the exchange wallet or say the centralized wallet. What you store in the metamask and other decentralized desktop wallet is ignored.
So this way it can make you store and HODL the crypto coins and there does not seem to be any good action than this. As you accumulate a lot in this action and also you can use this method for the storing of the coins and it would be a good option for the tax savings and the reporting for your holdings.
Crypto Holdings of Govt Officials will be Open
In every country where is a crypto ban, there are some tech savvy officials and the govt people who are holding the crypto that they are getting out of the criminals. And this has been the case with most of the countries out there. Which is kind of visible out there with the cases that are coming out.
Now South Korea is trying to make the govt officials crypto wallets open for the transparency. So that people in the citizen category would have some level of trust for the people who want to trust govt based CBDC and the crypto services. So think of this action of the govt as a means to build the trust.
South Korea is one of those sorted nations as far as the crypto is concerned. They are the one who cause the regular spike ups in the market with their investment in the crypto. So any restrictions and ban that they do add has a strong reason behind. Their regulatory actions are being viewed in a positive light.